Phil Spencer, the head of Microsoft’s gaming division, has openly expressed his curiosity about creating an Xbox handheld console to rival market leaders like the Steam Deck OLED and the Asus ROG Ally X. However, in a conversation with Bloomberg, he set the record straight, indicating that such a device isn’t on the immediate horizon.
During the discussion, Spencer conveyed that while there’s hope for future development, fans shouldn’t hold their breath for a release anytime soon. He mentioned, “Longer term, I love us building devices,” and emphasized wanting the team’s efforts to be driven by current trends and learnings.
In the meantime, Microsoft is concentrating on enhancing the Xbox app’s user experience for existing handheld PC gaming devices. A recent “compact mode” update for Windows mobile devices was launched, aiming to address some of the challenges reviewers, myself included, have pointed out, particularly with Windows 11 on handhelds like the ROG Ally and Lenovo Legion Go.
The interview also touched on Microsoft’s continued interest in acquisitions, following its high-profile $69 billion purchase of Activision Blizzard in 2023. Additionally, Microsoft is exploring mobile game stores, although those plans have hit some delays.
The Steam Deck, which made its debut in early 2022, really ignited the handheld PC gaming trend. Despite getting an OLED screen update, it hasn’t seen a significant hardware upgrade, and Valve doesn’t seem to have immediate plans for a new release. Most popular Windows-based devices rely on AMD’s Ryzen Z1 Extreme, indicating the PC gaming handheld market is still in its infancy.
Despite Xbox’s current position trailing behind Nintendo Switch and PlayStation 5, Spencer reassured Bloomberg that the business is thriving. “The business is performing right now, and I think that means a more healthy future for hardware and the games we build,” he noted, attributing success to the rise in PC and cloud gaming alongside their traditional console operations.
For an Xbox handheld to stand out, it will need to bring something unique to the table, differentiating itself from existing competitors like the Steam Deck and devices from Lenovo, MSI, and Asus. With a few years before its potential release, it promises to be an exciting journey to see what Microsoft might bring to this evolving market.
